"That's not how it works with EFX." - Avery
[hr]How does it work with EFX?

Here's my understanding:

Assuming a 1 pip spread, the bid/ask is 1.9450/1.9451, you buy at 1.9451.
It was a mistake - you hit the wrong button! (or changed your mind, whatever...)

You instantly exit, sell for 1.9450 so you're down by 1 and EFX charges you around 2 pips in commissions. How does that not add up to 3?

Not that you want to make a career out of this, but the instant you enter, how are you not 3 in the hole?

[hr]"The price has got to shift 4 in your direction to get the 1 pip net profit. " is NOT a true statement." - Avery
[hr]So the price goes up by 4 pips. The bid/ask is 1.9454/1.9455.

You sell at 1.9454 for a gross of 3 pips (paid 1.9451, sold for 1.9454), pay the 2 in commissions and keep 1.

My statements were simply identifying the house's edge. The broker wins on every trade! Alexander Elder emphasizes the fact that the deck is stacked against you from the get go and that you have to be on the winning side just to break even.

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I think his comment was regarding the fact that some brokers' fee is based on the spread in lieu of commissions.

I normally look at the difference from entry to target (or exit) price as being the gross (Profit / Loss) less commissions (and fees). My understanding is that EFX doesn't charge the spread as a part of their fees. I'm currently using their demo account but don't have a funded account yet.
kz

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[hr]"My understanding is that EFX doesn't charge the spread as a part of their fees." - Zeller4 / kz[hr]
Your're right, they don't charge for the spread but since we have to
* pay the higher price and
* sell at the lower price,
we need those price targets to move in our favor before we can break even.

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Your statements in the past few posts is my understanding, one or two point spread with EFX Group plus the commission that goes to them. The banks or institutions keep the spread.

Regardless, it is not a perfect trading world, and we need to understand how to trade profitably given all of the additional factors we know and are aware of and are not aware of. To say the least, I was blown away when TRO mentioned discussions he and I think Michal recently had with bank or institutional traders and all the information they have that we are not aware of. This is where I find mornings with www.paltalk.com with Avery and the rest of us pip pirates so valuable. I doubt there is anything like this anywhere on the web. Thanks to all of you all.

Patch the Pirate
In VA

ENOUGH being a Yalie for me Back to the Sea. "What i can lose, i can win" "YES YOU CAN" - dragon33 -"Pick one method and one pair and stick with them until you master it. "The choice is yours - success or failure." TRO

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Keep digging. I must say for myself this is a thread that is a great help. You have a very logical and incisive mind and you are asking questions I wish I had thought to ask. PtP

ENOUGH being a Yalie for me Back to the Sea. "What i can lose, i can win" "YES YOU CAN" - dragon33 -"Pick one method and one pair and stick with them until you master it. "The choice is yours - success or failure." TRO

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I took our poodle to the hair cut dog place and he looks great once again. Max is the nuttiest poodle I've ever had and he is training me well.

Look at futures and MB, EFX's mother ship.

Let me know what you think and are thinking.

Remember, Avery has been doing this stuff for a while and makes it look easy. We, you and I, need to learn what he has learned and trade on.

Patch the Pirate
In VA

ENOUGH being a Yalie for me Back to the Sea. "What i can lose, i can win" "YES YOU CAN" - dragon33 -"Pick one method and one pair and stick with them until you master it. "The choice is yours - success or failure." TRO

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Guys, you hit what you aim at. So if you focus on "being in the hole 3 pips right from the start", that's what you'll be IN THE HOLE.

If instead, you focus on taking the entries that are statistical winners, you're main decision is how much profit do you want to take this time.

It is that simple? YES!

It is EASY? Ease comes with time and experience.

I look at it this way, the first 2 pips (forex) or 2 cents (stocks) pays the commisions and fees. The rest is mine. That simiple. Debating/discussing the spread doesn't make you any money, TRADING DOES!

IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.